According to Euromonitor, e-commerce reached US$3.9 billion in the U.A.E. in 2020, reaching 8% of retail sales (Dubai Chamber of Commerce and Industry).
This is similar to Italy, but below France (13%) and the U.K. (28%). Online sales should double by 2025 to reach US$8 billion. In the U.A.E., Web order returns vary between 15% and 40% depending on the category, versus 5% to 10% for brick and mortars. Cash-on-delivery payment, which was a leading payment scheme until 2019, is slightly declining due to Covid-19 health concerns. Contactless payment is gaining ground. In April 2021, CommerCity, the first free zone dedicated to e-commerce, opened near Dubai International Airport (Umm Ramool). It includes a business center with more than 30,000 sq.m of offices used by Magento and Redbox Digital, plus 15,000 sq.m of warehouses ran by Hellmann Worldwide Logistics and DHL. The free zone targets the headquarters of global companies, which can then expand regional operations.